REG - Westminster Group - Trading Update and Exercise of Warrants

WestminsterAnnouncement

19/12/2019 07:05

RNS Number : 4021X
Westminster Group PLC
19 December 2019
 


 
 
 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014
 
 
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
 
Trading Update and Exercise of Warrants
 
Westminster Group Plc (AIM: WSG), the AIM listed supplier of managed security services and technology-based security solutions to governments and government agencies, non-governmental organisations (NGO's) and blue-chip commercial organisations worldwide, is pleased to provide a trading update on its business activities for the year ending 31 December 2019.
 
Trading Update
We are pleased to report the Group experienced strong growth for the year, both operationally and financially and we expect to report a significant increase in revenues over the previous year, maintaining our double digit year on year growth we have achieved in recent years, leading to a much improved EBITDA.
 
Both the Managed Services and Technology divisions have performed well for the year.
 
Our passenger numbers for our West Africa airport operations for the year are at record levels and the last few months of 2019 have consistently been some of the highest monthly traffic numbers experienced since we commenced operations there.
 
Our new Ghana operations are performing well and have already produced several hundred thousand USD in revenues. We are pleased to note that the ongoing discussions between Meridian Port Services and the Ghana Ports and Harbours Authority are close to being finalised which will allow for our contracts to be formally exchanged, albeit this is a formality given we are already appointed and operational. We look forward to the operation producing a meaningful contribution to our revenues in 2020 as the port continues to expand, capacity and throughput increases, and new tariffs come into operation. We expect our subsidiary Westminster International (Ghana) Ltd. to be an important and growing part of our business and we have already secured other business in the country.
 
We have already delivered the first advanced container screening solution to a port in an Asian country as part of the $3.48million US Dollar contract announced in April 2019. The second unit for a separate port in the same country is ready for shipping and is now expected to be delivered early in the new year with revenues for that unit expected to be recognised in Q1 2020.
 
In June 2019 we announced we were forming a 50.1% Group owned joint venture subsidiary, registered in Saudi Arabia, under the name Westminster Arabia. Our JV partners are Hazar International who, under their impressive Chairman, Sheikh Salman Bin Mohammed Bin Khalid Bin Hethlain, are strong and influential partners. We are pleased to report an experienced business development team is now in place within the country and we are already involved in several large-scale project opportunities in the Kingdom, including Saudi ports where we have conducted detailed operational and vulnerability assessments. The business opportunities for Westminster's products and services within Saudi Arabia are substantial and the formation of Westminster Arabia represents an important strategic development for the Group.
 
In May 2019 we announced we had acquired Euro Ops, a French based aviation security and support services company which, through its sister company, Euro Ops International (also trading as ICare), provides aviation support services such as Airport Security, Aircrew Management, Humanitarian Logistics, Operations & Dispatch, Ground Handling etc. Euro Ops has been fully integrated into the Group and is developing meaningful business and opportunities within Francophone territories.
 
Our training business continues to grow and, in addition to our direct contracts with airports around the world, and the opening of the training centre in the UK, we have entered into two important Strategic Alliances. In July 2019, we announced we had signed a strategic alliance agreement with the Gulf Aviation Academy, a leading provider of professional aviation training in Bahrain and the wider Middle East and North Africa ('MENA') region. This alliance has already produced tens of thousands USD in new business.
 
In November 2019, Euro Ops entered into a strategic alliance with the Tunisian Academy for Civil Aviation Safety and Security Training (AFSAC). From its impressive training centre in Tunisia, AFSAC provides certified aviation security training workshops on behalf of the International Civil Aviation Organization (ICAO) and is an AACO Approved Training Centre.
 
These strategic alliances are a major step forward in the delivery of aviation security training and greatly increase our global reach and portfolio of training services. 
 
Following our exit from the ferry operation, we handed back the ferry terminals in June 2019 and agreed a termination of our 21-year agreement with no further obligations. We are pleased to report that we have now concluded the sale for our remaining vessel, the Sierra Queen which has a book value is £170,000. The vessel has been sold for a total consideration of $643,000 US Dollars, payable by $40,000 deposit and the balance by 36 equal monthly payments. Under the sale agreement the Company will, at its own cost, ship the vessel to the purchaser in Greece in early 2020 and it will be secured by a mortgage charge over the vessel until final payment has been received.
 
We enter 2020 with increased confidence underpinned by an order book of around £2 million and several million GBP in contracted revenues already in hand from our port, airport, guarding and maintenance contracts. Coupled with healthy enquiry levels and numerous project opportunities at various stages of development we anticipate 2020 will be another year of significant growth.
 
Exercise of Warrants
 
The Company has received notification from a warrant holder who received warrants issued as part of the 25 July 2019 placing, that they wish to exercise 375,000 warrants at 12.5p per ordinary share ("Warrant Shares"). The new shares were issued on 19 December 2019 raising £46,875 for the Company and are expected to be admitted on AIM on 27 December 2019
 
Total Voting Rights
 
The Company's total issued share capital, following the issue of the Warrant Shares, will be 145,402,511 ordinary shares. As the Company does not hold any shares in Treasury, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.
 
 
For further information please contact:
 



Westminster Group Plc


Media enquiries via Walbrook PR




Rt. Hon. Sir Tony Baldry - Chairman








Peter Fowler - Chief Executive Officer








Mark Hughes - Chief Financial Officer


















S. P. Angel Corporate Finance LLP (NOMAD & Broker)








Stuart Gledhill


020 3470 0470




Caroline Rowe


















Walbrook (Investor Relations)








Tom Cooper


020 7933 8780




Paul Vann








Nick Rome


Westminster@walbrookpr.com



 
Notes:
 
Westminster Group plc is a specialist security and services group operating worldwide via an extensive international network of agents and offices in over 50 countries.
 
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long-term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manpower, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue-chip commercial organisations.
 
 
 
 




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